Atossa Therapeutics Inc. (NASDAQ:ATOS) experienced a sharp decline in premarket trading, with its stock down approximately 30% following the company’s announcement of a registered direct offering aimed at raising $4.5 million in gross proceeds.
Under the terms disclosed, the Seattle-based, clinical-stage biopharmaceutical company has entered into a securities purchase agreement with institutional investors. The agreement calls for the sale of 1,363,638 shares of common stock at a par value of $0.18 per share. The transaction also includes two series of warrants - designated Series A and Series B - each covering the right to purchase an additional 1,363,638 shares.
The warrants carry specific exercise windows and expiry schedules. Both series will become exercisable six months after their issuance. Series A warrants have a longer life, expiring 5.5 years from issuance, while the shorter-dated Series B warrants expire two years after issuance. Should all warrants be exercised for cash, the company estimates potential gross proceeds of up to $12 million from those exercises. Atossa cautioned, however, that there is no assurance the warrants will in fact be exercised.
Rodman & Renshaw LLC is acting as the exclusive placement agent for the offering. The company indicated the offering is expected to close on or about June 12, 2026, and remains subject to customary closing conditions.
Atossa said it intends to apply net proceeds from the offering toward the clinical development of its product candidates, as well as for working capital and general corporate purposes. The announced $4.5 million denotes gross proceeds prior to the deduction of placement agent fees and other expected offering expenses.
Atossa Therapeutics describes itself as a developer of novel therapies targeting oncology and other high unmet clinical needs. Its lead candidate, (Z)-endoxifen, is currently undergoing development across multiple clinical settings.
Sector impact: The announcement touches small-cap biotechnology equities, capital markets activity related to equity offerings, and clinical-stage biopharma financing dynamics.